Google Bringing In More Than $100 Million Per Day Via AdWords

Though investors seemed disappointed by Google’s third-quarter numbers, its core AdWords business is going like gangbusters, according to a new study by WordStream. The software company found Google earning $100 million a day through AdWords in Q3, serving 5.5 billion impressions per day on search pages and 25.6 billion impressions per day on the Google Display Network.

With $10.86 billion in ad revenue last quarter, we know that Google is making $121 million per day from ads. That’s simple division and similar to Google’s previous two quarters. But WordStream’s focus on the $100 million figure is part of a bundle of statistics trying to break down how that money is earned.

WordStream came to its conclusions after examining 2,600 accounts that ran its AdWords Grader audit tool in Q3, ranging from very small to very large across every industry and country where Google does business.

Average click-through rate (CTR) in Q3 on Google search came in at 3.5 percent, meaning advertisers paid for 192 million clicks daily. On the display network, CTR was only 0.18 percent, resulting in 45.8 million clicks per day. The search figure is 12.4% lower than Q2, and the display number has risen 13.8% in the same period.

WordStream found that the average CPC on Google search was $0.53, and it was $0.35 on the display network. Both networks declined since Q2, with search dropping 16.5% and display going down 18.2%. Those numbers differ from what Google reported with its earnings.  The company said aggregate CPC was down 15% year-over-year and down only 3% quarter-over-quarter. In fact, Google said the numbers would have been better but for unfavorable foreign exchange rates.

Based on the assumption that advertisers are optimizing for conversions, WordStream found that the average conversion rate in Q3 was 5.63% on Google Search and 4.78 percent on Google Display.

Though click-through rates and cost-per-click declined, WordStream CTO and founder Larry Kim believes gains in ad impression volume and clicks more than made up for these declines for Google — and, importantly, the lower CPCs might attract and retain more advertisers.

The top spending industries on AdWords are Finance, Travel and Shopping, WordStream found.

Top 10 Industries, And Top Companies Within Industries, Advertising On AdWords

The average CPCs for Finance were over $3 a click on the search network and more than $1 per click on the display network. Meanwhile, Shopping had the highest average click-through rate among industries, with an average CTR of 5.23%. When it comes to conversion rates, Jobs and Education (6.27%) came out on top, followed by Shopping (6.09%) and Beauty and Fitness (5.63%).

 

Related Topics: Channel: SEM | Google: AdWords | Stats | Top News

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  • grs_dev

    Hmmm. Then where did they get the remaining $10.5B from?!

  • Kannermanner

    Very interesting and revealing infographic – but I’d like to more about the comprehensiveness of this study. If the company-specific metrics are exclusively culled from 2,600 accounts who submitted to WordStream’s AdWords Grader – I wonder what the utility is in calling out the top 5 spenders within each sector.

  • http://twitter.com/victorpan victorpan

    You can learn more about the method of the study by visiting the link provided in the article. We’ll be more than happy to answer any questions there.

    To answer your question on why we included the top 5 spenders – it’s an easy way for non-search marketers to relate to in a very technical field. It also helped removed the need to explicitly define each industry category.

  • http://www.facebook.com/peter.mutiso1 Peter Mutiso

    This means that the finance niche is very lucrative

  • http://twitter.com/AmitGhare Amit Ghare

    That’s why google hate SEO. Make lots of updates to turn people to PPC….. We are waiting for

    Yahoo CEO Marissa Mayer Action

  • http://twitter.com/DevInVancouver Dev In Vancouver

    Naturally! With SERP quality having diminished considerably over the course of the last year, many legit SOHO & SMB businesses who could afford to do so had no choice but use G’s PPC model, or lose all/majority of traffic previously enjoyed from G. Very, very subtle bait & switch. Seems to be the trend these days amongst the major web properties.

  • http://www.kernelscorner.com/ Kernel’s Corner

    The name of the first industry itself speaks for how much they’re spending. Am I the only one who finds it quite funny?

    Well, Amit’s right: after Penguin and Panda there’s no wonder they’re tightening on SEO and focusing more on PPC. One more ‘black and white animal’ to be included in the updates and everyones gonna jump over.

  • Yousee

    After the Panda and Penguin lots of business owner were force to opt for the Adword campaign inorder to keep their business ticking.

  • cjvannette

    You don’t say.

  • playiteasy

    To: press@google.com
    Cc: washington.field@ic.fbi.gov
    Bcc: san.francisco@ic.fbi.gov
    Hello,
    Google, Inc. –you can work with me and the relevant authorities on a ‘deal’, or we will go to court and I will ask that the judge put a temporary restraining order on your use of Ad Words without a child porn filter, at least until the CP matter is adjudicated. Google can’t offer something that is unlawful to possess, and/or facilitate snd/or aid and abet that offer, which is a crime (US v Willaims).

    I understand that there is a ‘due process’ issue with this, but the authorities can’t be approving, de facto, ongoing sexual abuse of children, under its watch.
    D. B.

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